Тhe student loan – a financial help or a burden

Are you interested in a master’s degree abroad? The British government is already offering a student loan option to master programs in English universities. The amount of the loan is up to 10,280 pounds and can be used by students from the European Union who want to study at any university in the UK. The maximum loan amount is 10,280 pounds. The amount may be used to cover training fees and living expenses. In practice, the maximum amount is enough to cover the fee for most of the UK Master’s programs, but it will hardly be enough for all accommodation and living expenses. Some masters programs can cost more than 10,280 pounds.

Do I have to repay the entire loan?

Yes. The student loan scheme has been developed on the principle that the recipients will pay out the entire loan. This is indicative of the British Government’s confidence in the quality of university programs and the return on investment in British education. Your student loan will be canceled after 30 years, but most students pay off their loan earlier. And here comes the main question. Is the the student loan a financial help or a burden?

Immediately after his son filed for personal bankruptcy, a man in Osaka Prefecture received a bill that would lead to his own bankruptcy declaration. The man is now worried that his own father could be next.

A total of 15,338 personal bankruptcies were filed in connection with state scholarship loans over the five years through fiscal 2016, according to the quasi-governmental Japan Student Services Organization (JASSO), the loan provider, and others. The borrowers filed for 8,108, or 53 percent, of the total, while guarantors, such as their parents and other relatives, accounted for the remaining 7,230 cases. The annual number of such personal bankruptcy filings has hovered around 3,000 in recent years against a backdrop of spreading irregular employment, rising tuition fees and other factors. The record high figure of 3,451 in fiscal 2016 was up 13 percent from five years earlier.

In the case of the 52-year-old father in Osaka Prefecture, his now 27-year-old son borrowed more than 8 million yen ($73,900) through a JASSO scholarship loan to attend a private university. The monthly repayment of 40,000 yen weighed heavily on the son, who receives only about 200,000 yen a month in take-home pay. He filed for personal bankruptcy early last year. A JASSO loan applicant must either designate two guarantors, including one joint guarantor, or pay a guarantee charge to the Japan Educational Exchanges and Services, a guarantee institution. One parent serves as the joint guarantor. Relatives up to the fourth degree of consanguinity are eligible to be the other guarantor.

PayDay Box UK is not a lender, does not take applications or make loans or credit decisions. We are not an agent, representative or broker of any lender. We provide a service to connect you to a lender from our network. We do not control and are not responsible for any lender’s actions or decisions.